Background:
The Complainant, a Staff Nurse employed by the Respondent’s medical practice, was made redundant on 20 November 2023. Upon termination, she sought payment for annual leave accrued but not compensated. The Complainant’s representative presented both written and oral submissions, detailing the case history. A redundancy settlement agreement had been reached between the parties, which included a table of payments. However, it was noted that compensation for the accrued annual leave was omitted from this settlement. Despite bringing this omission to the Respondent's attention, no response was received. The Complainant worked a three-day week, totalling 21 hours per week. Based on the period from 1 January 2023 to 20 November 2023, the Complainant calculated her accrued annual leave at 74 hours. She sought payment for these 74 hours at her hourly rate of €29.76, which amounted to €2,202.24 in total for the accrued leave not taken.

Following the hearing, the Respondent submitted extensive documentation and a detailed submission outlining his position. He referred to the agreement reached between the parties and denied the claims made by the Complainant. The Respondent argued that the Irish Nurses and Midwives Organisation (INMO) had submitted several incorrect facts and accusations on behalf of the Complainant. Key attachments included a statement from the practice secretary, responsible for tracking employees' hours worked, annual leave (AL), and sick leave (SL). The submission detailed the method of calculating accrued AL, along with records of various leave categories for all employees from 2021 to 2023, with the Complainant’s details unredacted. The Respondent also provided the Complainant’s payslips for 2023, an occupational health specialist report, medical certificates from the Complainant’s GP, and a portion of the INMO submission calculating a €2,211.00 claim. Additional correspondence between the Complainant and the INMO, forwarded to the Workplace Relations Commission (WRC), was also included.

Finding:
The Adjudicating Officer found the statutory duty required investigation of the Complainant's claim for compensation for annual leave accrued and not taken, as provided under the Organisation of Working Time Act 1997. According to Section 23(1)(a) of the Act, when an employee ceases employment and has remaining annual leave, the employer must compensate the employee at the normal weekly rate for the unused leave. As the law is clear on this entitlement, issues outside of this were not under investigation.

The Adjudicating Officer found the complaint to be well-founded, determining that the Complainant was entitled to €2,202 in compensation for the untaken leave. Additionally, under Section 27 of the Act, the Respondent was required to pay €1,000 in compensation for breaching the Organisation of Working Time Act 1997. The decision was made in line with Section 41 of the Workplace Relations Act 2015.

Practical Guidance for Employers:

• Ensure redundancy settlements cover all entitlements, including annual leave accrued.
• Respond promptly to any claims or omissions raised by employees.
• Maintain accurate and up-to-date records of employee hours, annual leave, and sick leave.
• Adhere strictly to statutory obligations under the Organisation of Working Time Act 1997, particularly Section 23(1)(a), which mandates compensation for untaken annual leave upon cessation of employment.
• Conduct regular audits of leave entitlements and payment calculations.
• Be transparent in communication with employees and representatives, providing clear explanations and supporting documentation when necessary.

The full case can be found here:
https://www.workplacerelations.ie/en/cases/2024/august/adj-00050541.html